In California, there’s not just one minimum wage—there’s many.
Employers in California don’t just have to worry about federal and state minimum wages, they are also subject to numerous local minimum wage ordinances. Cities and counties across the state have legislated their own minimum wages, at higher than statewide (and federal) levels.
These local minimum wages typically rise on an annual basis (either in January or July) based on inflation as measured by a local Consumer Price Index (CPI). The state of California and many of its municipalities specify a separate, smaller minimum wage for small businesses with fewer than 26 employees.
Local regulations add yet another layer or complexity to California labor law. If you operate in more than one location, you could be subject to multiple different minimum wage levels in one day. Get your calculations wrong and you face the prospect of wage and hour lawsuits.
To help your organization stay compliant with latest minimum wage requirements, Paycor has created a breakdown of minimum wage in California by city and county. We will update 2021 minimum wage increases as they are announced.
|County or City||2020 Minimum Wage||2021 Minimum Wage||2020 Minimum Wage for Small Businesses||2021 Minimum Wage for Small Businesses|
|Berkeley||$16.07||$16.07 + CPI (on 7/1)||-||-|
|Emeryville||$16.84||$16.84 + CPI (on 7/1)||-||-|
|Fremont||$13.00||$15.00 + CPI (on 7/1)||$13.50||$15.00 (on 7/1)|
|Half Moon Bay||$15.00||$15.00||-||-|
|Los Angeles||$15.00||$15.00||$14.25||$15.00 (on 7/1)|
|Los Angeles County||$15.00||$15.00||$14.25||$15.00 (on 7/1)|
|Malibu||$15.00||$15.00||$14.25||$15.00 (on 7/1)|
|Milpitas||$15.40||$15.40 + CPI (on 7/1)||-||-|
|San Francisco||$16.07||$16.07 + CPI (on 7/1)||-||-|
|Santa Monica||$15.00||$15.00||$14.25||$15.00 (on 7/1)|
|South San Francisco||$15.00||$15.24||-||-|
NB: In certain jurisdictions, nonprofits are exempted or subject to a lower minimum wage. Exemptions or reductions may also apply to younger employees classified as ‘learners’. Additionally, there may be higher minimum wage levels for employees of large hotels or airports. Unlike some states, California does not allow employers to take tip credits, and so there is no separate tipped minimum wage.
* Novato has a third category of minimum wage, for very large businesses with 100+ employees. In 2021, this will be set at $15.24.
** Hayward and San Carlos will impose new minimum wages as of January 1, 2021
*** San Diego’s minimum wage has been surpassed by the state minimum wage
Paycor is not a legal, tax, benefit, accounting or investment advisor. All communication from Paycor should be confirmed by your company’s legal, tax, benefit, accounting or investment advisor before making any decisions.
How Paycor Helps
The good news is, Paycor can help you stay compliant, wherever you are in the country. Even if employees work in multiple locations with divergent minimum wage levels, our system tracks all relevant legislation and will alert you if an employee’s pay is ever set below the allowed level for a given location.
To learn more about how Paycor can help you stay compliant, save time and make better business decisions, talk to a member of our team.
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